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It’s so tempting - the ability to sell your home ‘off-market’ without the risk. Property marketing packages in Australia range anywhere from sub-five thousand dollars through to tens of thousands of dollars. Is it really a worthwhile investment?
Plus, there’s the very public statement of putting up a signboard and broadcasting your home ‘for sale’ via the various real estate portals and print media options. What will the neighbours think if you don’t achieve your dream price?Don’t be fooled that dipping your toe into the market is a safe or easy option, in fact many sellers learn to regret this decision in the future as evidence may suggest that money is often left on the table.There are many reasons why people choose to sell their homes. Upsizing, downsizing, retirement, job promotion, growing family…..divorce. The list goes on. While maximising price may not always be the primary driver of the sale, it certainly is incredibly important and knowing you have achieved the ‘market best’ price provides comfort and satisfaction to the seller. Ultimately, that’s the reason you engage a real estate agent, to leverage their expertise for a premium price.While marketplaces are being affected by different buying and selling conditions, we are still seeing strong buyer activity. Most properties are still seeing multiple offers submitted, meaning at the end of the campaign, there are usually ‘left over’ qualified buyers who are poised to put pen to paper for the right property.Enter temptation. Couldn’t you just bring these buyers through your home to achieve a quick sale and avoid the hassle of open homes and the cost of extra marketing?Here are the reasons why I would recommend against this path.
1. Competition creates the highest prices
We all understand the psychology behind ‘compression selling’; people want to buy what other people want to buy. It’s part of the reason why we often see premium prices achieved at our auctions. Buyers feel extremely comforted by the fact that someone else is bidding against them, justifying their choice and helping dampen ‘buyers remorse’ with the knowledge that if the worst came to the worst, and they had to sell again, there would be a buyer for that property.
When you put interested buyers in a property with multiple other buyers, it generally results in higher offers that are presented quicker. When you are showing a few ‘off-market’ buyers, you remove this evidence of desirability and potentially miss your only shot at creating a great first impression.
2. New buyers enter the market every day
While your agent may be very active in your suburb, they haven’t necessarily met every buyer. Every day something changes in the life of a buyer and new buyers enter the world of house hunting. Real estate success is tied to marketing and marketing works on reach and frequency. Reaching as far as you can as often as you can. Today’s pre-approved buyer may be your premium price purchaser.
4. Seller's remorse
You may have heard about buyer's remorse, but there can also be seller's remorse. This occurs when a seller may reflect on the sale of their home and wonder, ‘could I have achieved a higher price?’
This occurs usually when a seller feels forced to take a price that doesn’t feel like market best, or when they have been presented with only one or two offers.
A great agent will understand that exposing the property to as many potential buyers over a two to four week campaign increases the environment for receiving multiple offers. This gives the seller ultimate evidence of ‘market value’ and ultimately be able to sell at a market best price.
When sellers receive three plus offers, the feeling of seller's remorse is removed.
As the adage goes, you can’t sell a secret. Agents are incentivised to achieve premium prices for their clients and they will usually recommend that this is supported by a fully comprehensive marketing campaign. This investment is typically recouped by offers above those submitted during an ‘off-market’ phase.
